Broker's Take: 'Buy' call on Riverstone

RHB Research has maintained its "buy" call on Riverstone Holdings with a target price of S$1.54.

Riverstone reported a stellar Q1 2015 result, with revenue surging 45 per cent year on year to RM127.2 million (S$47 million), driven by a higher sales volume as its one-billion-capacity expansion came online, it said.

"As we continue to expect stellar quarters ahead, we maintain BUY and lift our FY2015 forecast net profit after tax (NPAT) by 15 per cent, resulting in a higher target price of S$1.54 (27 per cent upside, 16.3x FY2015 peer average price earnings). NPAT surged 69 per cent year-on-year to 27 million ringgit, at 33 per cent of our previous estimate and exceeding the previous consensus forecast," RHB Research said.